German Chancellor Olaf Scholz on Monday said he was looking to deepen the economic relationship with Indonesia.

The German premier was speaking at the Hannover Messe international trade fair and was joined by Indonesian President Joko Widodo for the opening tour.

"Indonesia and Germany are close partners and have the same values," Scholz said.

A key partnership with Germany

Germany was "already Indonesia's key trading partner in Europe," according to the German chancellor.

"I'm sure this trade fair will help us expand our economic relationships even further," Scholz said.

Indonesia is exhibiting as the partner country at the Hannover Messe trade fair, which is one of the world's largest industrial showcases.

Widodo said that the business partnership between the two countries "can be a good example of an equal, mutually respectful, mutually beneficial North-South partnership."

"At the Indonesia-Germany business meeting, I invited Germany to be an important part of our mutual progress," Widodo said in a tweet.

Scholz spoke of the "major change" facing industry with the shift from fossil fuels to climate neutrality, which presented a "really big challenge."

The German leader also said Indonesia was experiencing an economic boom in several areas, including digital technology. The country is also investing in preparing for a transition to cleaner renewable energy, Scholz highlighted.

Indonesia seeking investment

Indonesia presents an attractive source of key materials, including copper, coal, natural gas, as well as palm oil, and has a strong appetite for investment.

Widodo had already stressed the day before that his country had investment needs of one trillion dollars until the year 2060.

Germany is hoping to strengthen its economic ties with the fast-growing economies in Southeast Asia while also offering an alternative to Chinese investments.

China is Indonesia's largest trading partner and in 2022 saw its imports from Indonesia increase by around a third in the first half of the year, when compared to a year before.

kb/dj (dpa, Reuters)